If you're thinking about buying or selling a Connecticut home, there's important news from the banking world that could affect your plans. Banks have recently made it tougher to get a mortgage for almost all types of homes. They're being more careful about who they lend money to, especially in the last few months of 2023 when interest rates were higher than usual.
But don't lose hope just yet. The good news is that banks are optimistic about 2024.
They're expecting more people to want mortgages this year because they predict that interest rates will go down. This information comes from a survey done by the Federal Reserve, which is like the bank for banks.
Here's what the survey found:
Tighter Rules: Around 15% of banks made it harder to get big loans for expensive homes, known as jumbo loans. They also tightened rules for other types of loans like home equity lines of credit (HELOCs) and some non-traditional mortgages.
Less Demand: More than half of all banks said that fewer people were asking for mortgages. This was especially true for regular home loans and loans for people with less-than-perfect credit.
Optimism for 2024: Despite the current situation, banks are hopeful for the future. They think that demand for mortgages will go up in 2024 because they expect interest rates to drop.
So, what does this mean for you as a buyer or seller? Well, if you're planning to buy a home, it might be a bit harder to get a mortgage right now. But don't let that discourage you because things could improve soon. And if you're selling, keep in mind that more buyers might be looking for homes in the coming months.
If you want to learn more about how these changes might affect your plans, you can call Triniyah Real Estate at (203) 200-0933 to speak with one of our sales agents. We're here to help you navigate the real estate market, whether you're buying or selling.
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